INVESTMENT CURRENCY
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Chart of the day: Offshore yuan on the move

PUBLISHED : Thursday, 12 May, 2016, 9:23pm
UPDATED : Monday, 27 June, 2016, 11:51am

Like its onshore cousin, a gentle rounded bottom has been forming for the offshore yuan since March and happens to catch trend-line support (from late 2015) rather well. This also aligns with the 200-day moving average while the Ichimoku averages (nine- and 26-day) have crossed to bullish. All these suggest we are about to move up another notch. Cloud resistance at 6.5475 might stall proceedings briefly, but watch for a break above the late February high of 6.5585 as this might set off a bout of short-covering. Note that both momentum and the MACD have been clearly bullish since mid-April and that the US dollar is currently not overbought against the yuan. The target could be 6.62.

Nicole Elliott is a technical analyst

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